Aberdeen's Deutsche acquisition gains traction
Aberdeen Asset Management has earned a cautious thumbs up from ratings house Morningstar on the manner in which it has handled the acquisition of Deutsche Bank’s local equities funds management business.
In an assessment issued this week, Morningstar said it remained cautious but more upbeat in its view of the Aberdeen strategy now that the changes had been completed.
“The Deutsche acquisition has been handled effectively and Aberdeen has progressively removed incumbent positions to end up with a portfolio that reflects its own investment views,” the ratings house assessment said.
It noted that examples of this had included the removal of Allco Equity Partners, Centro Properties, and Commander Communications.
“The team of five runs a well-versed investment process and the result is a concentrated vanilla portfolio exuding stability,” the Morningstar assessment said.
“While all the pieces now appear to be in place for Aberdeen, we remain cautious about the team’s lack of experience and depth relative to its peers. We also have some misgivings about the less than ideal remuneration structure — bonuses are linked to the performance of the Aberdeen business, rather than encouraging key investment staff to have skin in the game,” it said.
Recommended for you
Australia’s largest super funds have deepened private markets exposure, scaled internal investment capability, and balanced liquidity as competition and consolidation intensify.
The ATO has revealed nearly $19 billion in lost and unclaimed super, urging over 7 million Australians to reclaim their savings.
The industry super fund has launched a new digital experience designed to make retirement preparation simpler and more personalised for its members.
A hold in the cash rate during the upcoming November monetary policy meeting appears to now be a certainty off the back of skyrocketing inflation during the September quarter.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
215.17 3 y p.a(%)
2
Loftus Peak Global Disruption Fund Hedged
118.15 3 y p.a(%)
3
Global X 21Shares Bitcoin ETF
75.00 3 y p.a(%)
4
UBS Solactive Global Pure Gold Miners UCITS ETF Dis USD
61.11 3 y p.a(%)
5
Global X Ultra Long Nasdaq 100 Complex ETF
60.93 3 y p.a(%)
